IAS 1 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
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General features of a set of financial statements: fair presentation, going concern, materiality and aggregation, comparatives and consistency: Statement of IFRS compliance
File on the presentation of financial statements under IAS 1: fair presentation, classification of liabilities, comprehensive income, notes and transition view to IFRS 18
Section 1 of 7
Objective
Section brief
- What to document
- The engagement, its scope and the working mode chosen.
- Why
- A workpaper answers one precise question: framing it avoids off-topic work.
- How
- Read the objective and the assignment, then choose the mode (guided, semi-guided, professional).
- Expected result
- You know which question the workpaper must settle, and for which reporting date.
- Your role
- Preparer of the IAS 1 workpaper
- Level
- Expert
- Estimated time
- ≈ 60 min
- Progress
- 0 / 3 steps done (review excluded)
Context
Mervane SA (fictitious entity), an industrial company, closes its accounts on 31 December 20X6; the financial statements will be authorised for issue on 28 February 20X7. The preparer builds the presentation file submitted to a review check: classification of a borrowing whose covenant is not met at the closing date, going concern with a working capital deficit, compliance statement, comprehensive income and changes in equity, and a transition note to IFRS 18. IAS 1 remains applicable until IFRS 18 applies (annual periods beginning on or after 1 January 2027). Teaching simulation: the review trail of the file (preparation, reviewer notes and final sign-off) is simulated for demonstration purposes; it is neither a real review nor a validation of the content.
Assignment
Going concern and compliance statement
Purpose of the workpaper
Record the facts of the entity, the information available about the future (at least the 12 months after the closing date) and the items that are candidates for aggregation or separate presentation. Then assess fair presentation, going concern and materiality; check the comparatives and the consistency of presentation. The facts are case data; each conclusion remains a supported judgment and no numerical threshold is presented as imposed by the standard.
Questions of the file covered by this workpaper
- Can the statements be prepared on the going concern basis and what information to give?
- Is the statement of compliance with IFRS possible?
Documents in the file
Open the documents to pick out the relevant information.